Did you know that the number one reason why businesses fail is that there is no market need? Some businesses will always have a market need and opening one is the best option.
For example, laundromats are always going to be necessary because people need to wash their clothes for an affordable price. If you want to start a new laundromat to make money, you need to follow the right steps.
Keep reading for a brief overview on opening a laundromat business.
Plan Your Business
To start a new laundromat, you’ll want to have a clear plan in place. The topics you’ll want to map out include:
- Startup and ongoing costs
- Target market
- Business Name
- Service charges
A major part of your business plan will include how long it will take to reach a breakeven point. Outline how your laundromat will make money.
Simply put, the laundromat industry makes money by charging clients to wash and dry their clothes. A lot of laundry mats operate as a self-serve operation where customers can insert money into machines to operate them.
Although most laundromats rely on quarters, you can find coinless laundry equipment here that might be a better option.
Form a Legal Entity
To form a legal entity, you’ll have to choose one business structure. The four common business types include:
- Sole proprietorship
- Partnership
- Limited liability company (LLC)
- Corporation
To protect yourself from being held personally liable if the laundromat gets sued, choose an LLC or corporation.
Register for Taxes
Before you can open for business, register for state and federal taxes. To do so, you’ll first have to apply for an EIN through the IRS website.
Open a Business Account
As a small business owner, it is important to separate personal finances from business finances. When you have an account, you can start building business credit to help you apply for a credit card and other financing options.
Set up Business Accounting
Recording sources of income and expenses is critical to the financial performance of your business. Set up business accounting to keep accurate documents for annual tax filing.
Obtain Permits and Licenses
Business ownership requires you to obtain permits and licenses. Avoiding this step in the process of opening a laundromat can result in fines and cause your business to be shut down.
In most states, you’ll need a dry cleaning license. To gain the best information on local licenses and permits, check the clerk’s office in your city or county.
Obtain Business Insurance
A smart business not only obtains the insurance they need to open but additional insurance in case of unforeseen circumstances. Start with General Liability Insurance and figure out what else you need from there.
Start Branding
Once you have all of the logistics out of the way, you can start branding your business to bring in customers when you open your doors. Promote and market your laundromat to compete with competitors and keep customers coming back.
Opening a New Laundromat the Right Way
A new laundromat is a great option for those looking for a full-time business gig. If you are looking to open a laundromat in your spare time, focus on making it a passive business by giving someone else responsibilities.
Creating a successful business begins with a plan. By using this guide, you’ll have everything you need to start a new laundromat.
After opening, you’ll likely need more business advice. Check out the other posts on our blog!
